Chartered Investment Banking Examination
Global Academy of Finance and Management (GAFM)
Answer 10 Questions only. Duration: 4hrs. December 2022
What is net debt, and why is it used when a company is valued?
According to the CAPM, does the marketplace compensate for systematic or specific risks?
. What are deferred taxes, and, how do you create them, give me a specific example.
What do you think is going to happen with interest rates over the next 6 months?
What is the biggest debt market (by-product) in the US?
Rank the top 5 markets. What is the most liquid debt market in the world? What does liquidity allow an investor?
What is unique about the US Treasury Market vis a vis the rest of the debt market? What are the components of WACC?
When a company increases its leverage, how does the WACC change?
Explain the reasoning. You are looking at a utility company, which of the three financial statements do you look at first?
You are looking at a retail company, which of the three financial statements do you look at first?
You are looking at an airline, which of the three financial statements do you look at first?
You just finished a company valuation, but you realize that you need to increase depreciation. How does the valuation change?
Two companies with identical sizes, margins, products, and customers have different P/E ratios, why?
How would the leverage of a company differ depending on its industry and lifecycle?
If a company bought this table today, how would the three accounting statements look today and in one year?